Petrol Prices Set To Decrease As Global Oil Prices Fall

Petrol Prices Set To Decrease As Global Oil Prices Fall

Nigerians may soon experience a reduction in the price of Premium Motor Spirit (PMS), commonly known as petrol, as global Brent crude oil prices have significantly declined. Recent reports indicate that the price of Brent, a key benchmark in the oil market, has dropped from $69.90 to $65 per barrel.

This decline can be partly attributed to new tariffs announced by U.S. President Donald Trump, which have affected market dynamics. Additionally, the Organisation of Petroleum Exporting Countries (OPEC) and its allies have decided to increase oil production by 410,000 barrels per day starting in May 2025, a substantial rise from the previously planned increase of 135,000 barrels per day.

As a consequence of the falling crude prices, the depot prices of major suppliers have also decreased. For instance, the prices at Mainland, A.Y.M, and Ever have dropped to ₦918 per litre from ₦920 per litre, while Prudent, Eterna, and Soroman have reduced their prices to ₦912, ₦897, and ₦915 per litre, respectively.

According to petroleumprice.ng, if current market conditions remain stable, oil marketers are likely to lower their pump prices as they receive fresh supplies this week. This adjustment could result in reduced retail petrol prices, ultimately benefiting consumers nationwide.

In an interview with Sunday Vanguard, Billy Gillis-Harry, President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), expressed optimism over the potential benefits of this price decline. He noted that sustained favorable market conditions could lead to lower transportation fares and reduced costs for goods and services, positively impacting the Nigerian economy.

Meanwhile, OPEC recently stated that the eight participating countries, previously involved in voluntary adjustments in April and November 2023, convened virtually on April 3, 2025, to assess global market conditions. They agreed to implement a production increase of 411,000 barrels per day starting May 2025, which represents a combination of the planned increase for that month and two additional monthly increments.

These adjustments are intended to ensure stability within the oil market and are subject to changes based on evolving market conditions. OPEC+ countries have also reiterated their commitment to adhere to the previously agreed voluntary production adjustments from their 53rd Joint Ministerial Monitoring Committee meeting on April 3, 2024. Additionally, they are expected to submit updated compensation plans for any overproduction since January 2024 to the OPEC Secretariat by April 15, 2025.